Don Allen - Bankruptcy Trustee & Receiver
Trustee & Receiver
705-733-1511 1-888-504-1511

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Corporate Recovery and Restructuring

We are independent practitioners with many years of experience with large national firms in all types of mandates and in many different industries. We have no conflicts and we work directly on the files throughout the engagement. We are lean, creative and innovative, with big firm experience and we add significant value at considerably reduced costs compared to others in our field. Our professionals bring an experienced, innovative set of skills to a spectrum of companies, from active going concerns to turnarounds to distressed insolvent situations.

Viability assessments and Look-sees

We provide lenders with a current realistic picture of a business and assess the viability of ongoing operations. Using our analytical tools, we provide a quick diagnostic of both the operations and the finances of the business and report realistic options to determine the right strategy going forward. We monitor at appropriate stages in a turnaround or restructuring, ensuring quick, accurate, cost effective and meaningful reporting of financial and operational metrics, with complete reporting to the stakeholders on a timely basis.

Example - Motor Homes Vacation - Financial Advisory, Court Appointed Receiver & Manager

Due diligence

We assist in a variety of situations with strategy evaluation and development of alternatives, as a condition of lending or after a loan, to assess the current situation before deciding how to move forward. Our review includes a financial assessment tied in with an operational assessment and linked with an overall examination of strategy.

Examples - Consumer Products - Due Diligence

Manderley Turfgrass - CCAA - Due Diligence & Purchase Offer

Business advisory assignments

You are concerned with aspects of your business and you may want help to approach your bank and/or your lawyer. We can work with you to examine your business and suggest ways to help you respond to your creditors in all areas of operations and finance.

Example - Ontario Golf Course Resort - Marketing and Business Plan

Interim Management

We have an experienced team of hands on managers who can assist in interim management functions in areas of operations or finance. The earlier you identify a need and call on our help, the more we can be of service to help rectify the problems.

Example - Sayers & Associates - Restructuring Plan Development & Implementation

CCAA / BIA Monitor roles

We can help formulate a plan of arrangement under the CCAA or filing a Proposal under the BIA. We can work as Monitor or Trustee in a filing under one of these statutes to help formulate a restructuring plan. We have worked as CRO’s to help reposition the company, attract new capital, sell non-strategic business units or redundant assets, add needed management expertise and assist in communicating the plan to creditors and other stakeholders.

Example -  Fast Food Franchisor - Financial Review - CCAA Monitor

Receivership or Interim Receivership

We act as a Court Appointed or Privately Appointed Receiver or Interim Receiver to assist in getting control of and selling a business and obtaining maximum value for the assets.

Examples - Real Estate - Court-Appointed Receiver & Manager
Battery Plus - Financial Advisory, Court Appointed Receiver & Manager

Proposals and Bankruptcy - Corporate

We can help you look at all options available and determine which is the most creative and best solution for you and then we can act as Trustee to help you solve your challenges.

 

Our goal is to help distressed companies rebuild their operations and maximize value for all stakeholders.

Call us at 888-504-1511 or email us to let us help you get control of these problems in a FREE consultation in person or over the phone. 

 

MOTOR HOMES VACATION – Financial Advisory, Court Appointed Receiver and Manager

This national distributor of luxury motor home vehicles was suffering from cash and liquidity challenges and poor management and reporting to its lender. Don Allen was retained by the lender to assess the current situation and the viability of the Company. This then turned into a Court appointed receivership. As Receiver, we took inventory and marshalled the vehicles across the country to determine the lender’s true security position. We met with the lender and reviewed the options. We determined the best option was to sell the business through a Court approved process.  We packaged the inventory by location and sold it in parcels to maximize the return for the secured creditor.

 

CONSUMER PRODUCTS – Due Diligence

Don Allen & Associates was retained by a lender to assess the viability of an $11 Million consumer products manufacturer and distributor of blow-moulded garden and leisure products. The Company business plan projected significant expansion into the US and it had approached the lender to advance $5 Million to assist with this.

The Company was experiencing cash and liquidity challenges.  We conducted meetings with management and interviewed key employees to investigate the history and future plans of the Company.

Our investigation revealed a number of significant anomalies and risk factors that were previously unknown to the lender and substantiated that the Company had not been totally forthcoming in its reporting to the lender.

The lender withdrew its financing offer, thereby avoiding potential significant losses by lending to the business.

 

MANDERLY TURFGRASS – CCAA – Due Diligence & Purchase Offer  

Don Allen’s mandate was to find undervalued investment opportunities.  We learned of the largest sod and turf-grass producer in Canada being for sale under CCAA proceedings. We were retained by a private investor to perform due diligence to determine if an offer should be made. The Company was experiencing cash and liquidity challenges and management was not functioning efficiently or effectively. Internal morale had declined and the major stakeholders had lost confidence in the business.

We examined all aspects of the Company across the country and identified issues and corrective actions required. We developed a bidding strategy for the offer and a restructuring and management plan for the Company ongoing.  We met with the key stakeholders to obtain their understanding and buy-in.

We negotiated and submitted a bid through the CCAA process.  The Company principals submitted a last minute offer and used our offer as a stalking horse bid in the Court process. 

 

ONTARIO GOLF COURSE RESORT – Marketing and Restructuring Business Plan

This Ontario golf course and real estate development had been suffering losses. Its lenders wanted to see an updated marketing assessment for the business and a business plan which would show how the course could become profitable within the foreseeable future.

The Company had poor internal reporting and issues between the owners and the company was experiencing cash and liquidity challenges.

Don Allen & Associates used its affiliation with a well-known golf industry expert to perform a detailed market study and assessment of the particular region and the competition.  Don and his team then examined all aspects of the business to determine the options available.

Don successfully developed a turnaround business plan focusing on product offering, pricing, overhead and operations management and reporting that would lead to producing positive EBITDA. Don communicated this to various stakeholders and assisted with its early stage implementation.

 

SAYERS AND ASSOCIATES – Restructuring Plan Development and Implementation

Sayers was a $100 Million mechanical contracting company, working on large commercial construction projects across Canada. The Company had gone through a period of significant reductions in new contract work and there were increasing holdbacks and lien claims on jobs and defaults in bonding agreements. Certain parts of the business were underperforming and management was not functioning as effectively as needed. All of this resulted in cash flow deficiency and increasing covenant defaults with the company bank and bonding company.  As well, there was an out-of–trust situation which the company was struggling with getting under control and informing its bank. All of this led to a loss of confidence of the major stakeholders.

Fred, Chris and Scott Sayers commented, “You quickly learned all aspects of our organization and developed sound strategies that helped us to re-focus on our profitable core business segments. Your ability to roll up your sleeves and work efficiently with our management team and staff helped us execute more efficiently and effectively. Your leadership in dealing with our bank and other key stakeholders allowed us to maintain their confidence through the restructuring process. Your management of the divestiture of a major division was a key driver in our overall plan.”

Don Allen led the implementation of the restructuring plan, monitoring and reporting on milestone results. A major division was sold, expenses rationalized and management changes made. The hold backs, liens and out-of trust position were brought under control. The secured lender was paid down and eventually repaid and the bonding company deficiency was rectified. This successfully completed restructuring resulted in a turnaround of the company and continued relationship with its bank.

 

COFFEE COFFEE – Financial Review – CCAA Monitor


Coffee Coffee is a national food and beverage franchise operator, with retail locations across Canada.  Long struggling as the second most popular coffee retailer, the organization had chosen to keep brand awareness and top-of-mind associations by way of an aggressive physical expansion campaign - as opposed to the industry's traditional brand reinforcement media-buying strategy.

The Company had fallen on tough times. On top of underperforming franchises in various parts of the country, senior management had long managed un-checked - the result of which was pronounced cash and liquidity challenges and fractional franchisees, which was affecting operations at all levels.

The Company lenders were not happy and appointed Don Allen, partner of a national restructuring firm, to assess the Company's financial and operational viability. Over a three month period, Don and his team worked with a new incoming president and examined all aspects of the Company - a top-to-bottom assessment of operations at Coffee Coffee’s head offices and in relation to the franchisees. During that period the team considered and modelled different restructuring options.

Don and the team met with the key stakeholders to review the findings and recommendations and it was decided that the best course of action was to file a plan of arrangement under the Companies' Creditors Arrangement Act (CCAA) to attempt to restructure the business. Don assisted the Company to develop this plan and get support for it from stakeholders and creditors.

Over the next six months, Don and his team acted as a Monitor under the CCAA to assist Coffee Coffee's new management team to carry out the plan of arrangement, helping them deal with suppliers and franchisees, as the Company regained momentum to move forward.

 

REAL ESTATE – Court Appointed Receiver & Manager

Don Allen & Associates led the Court appointed Receivership of six commercial properties, which comprised of operating and non-operating businesses that were losing money, were out of control and which had insufficient funds to sustain the ongoing losses.  Some of these businesses were of a nature that there was a high cash component in doing business, with little or not reporting of the business activities.

As Court appointed Receiver, Don had to gain control of these businesses and properties, assess their current state and continue to operate them while a sales strategy for them was developed, approved and carried out. There was poor and incomplete record keeping and no effective management. Competing stakeholders required ongoing effective communication, strategy development and obtaining consensus.

Don established control of the properties and developed a proposed sales process.  He met with key stakeholders to update them, receive input and establish agreement on a realization plan.  He then worked with agents to put the marketing plan in place, reviewed potentially interested parties and negotiated offers to purchase to finalization. Throughout the process, Don kept the stakeholders apprised of the ongoing status and reported to the Courts to obtain required approvals. All of the properties were sold, leading to an optimal realization for the secured lenders.

 

BATTERY PLUS – Financial Advisory, Court Appointed receiver & Manager

This national retail franchise chain of electronic consumer goods was run by a cunning president. Don Allen and his team were retained by the lender to assess the viability of the Company.  Upon seeing the true state of the damage in the Company, Don was Court appointed as Receiver and Manager.  The Company had suffered from rapid and uncontrolled expansion and there was a lack of internal controls. Liquidity challenges and other anomalies revealed that management was not totally forthcoming.

We examined all aspects of the Company to determine the options available and communicated with stakeholders the issues and the options. We ran the operations and rationalized the business by closing some franchises.  We determined the best approach was to sell the business through a Court approved process.

We developed a sales package, researched the market place and found a buyer, with which we negotiated and finalized an en bloc sale, after obtaining Court approval.

info@allentrustee.ca
1.888.504.1511

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